McKinney isd PROPOSED budget 2009-10

1. McKinney isdPROPOSED budget2009-10 June 22, 2009

2. 2009-10 BUDGET HIGHLIGHTS • GENERAL FUND • PROPOSED SALARY & BENEFIT ENHANCEMENTS • DEBT SERVICE FUND • FOOD SERVICE FUND • TAX RATE INFORMATION

3. HB3646 IMPACT SUMMARY • Adds $120 per WADA to target revenue level ($3.3 million) • Requires greater of $60 per WADA or $800 to be given in across the board pay raises to teachers, librarians, counselors, nurses, speech pathologists (±$850 for MISD) • Requires local “step” increases on top of state raise • Total cost of mandated raises – both state & local is ±$2.6 million • Raises contingent on Commissioner of Education determining that mandated raises are an allowable use of federal stimulus funds.

4. GENERAL FUND BUDGET SUMMARY

5. REVENUE COMPARISON (In Millions)

6. EXPENDITURE COMPARISON(In Millions)

7. GENERAL FUND EXPENDITURES BY FUNCTION

8. EXPENDITURE COMPARISON – BY OBJECT(In $Millions)

9. GENERAL FUND EXPENDITURES BY OBJECT

10. SUMMARY OF SIGNIFICANT EXPENDITURE BUDGET CHANGES FROM 2008-09 TO 2009-10 ($Millions) REVISED 2008-09 BUDGET $174.2 INCREASES: INCREASE IN SALARIES AND BENEFITS 3.3 ADDITIONAL STAFFING (NET) 0.5 LAWSON E.C.C. OPERATING COST 0.9 TRS-ON BEHALF 0.6 INCREASED TRANSPORTATION COST 0.7 DECREASES: CAPITAL OUTLAY & SPECIAL REQUESTS (0.6) UTILITIES TRANSFER FROM FOOD SERVICE (0.2) OTHER (NET) (0.3) BUDGETED EXPENDITURES 2009-10 $179.1

11. PER PUPIL COMPARISONS

12. FUND BALANCE ESTIMATESGENERAL OPERATING FUND 2009-10 FUND BALANCE (In $Millions) PROJECTED 6/30/09 FUND BALANCE $49.0 PROJECTED FY10 REVENUES 175.1 PROJECTED FY10 EXPENDITURES (Net of Anticipated 2.0% Expenditure Variance) (175.5) PROJECTED 6/30/10 FUND BALANCE $48.6 PROJECTED 6/30/10 FUND BALANCE AS A % OF 2010-11 EXPENDITURES (ASSUMING 3% GROWTH) -------- 26.9%

13. GENERAL FUNDBUDGET SUMMARY OF ACCOMPLISHMENTS • Includes staffing and other operating cost for Lawson Early Childhood Center. • Provides reasonable pay raises considering economic climate. • Increases health insurance contribution to absorb a portion of premium increases. • Retains mid-year and teacher supply reimbursement stipends. • Holds spending per pupil to $2 increase (0.04%). • Decreases budgeted deficit by $3.6 million. • Maintains current M & O tax rate of $1.04.

14. PROPOSED SALARY AND BENEFIT ENHANCEMENTS2009-10

15. SUMMARY OF SALARY/BENEFIT ENHANCEMENT RECOMMENDATIONS • Teachers, Nurses, Counselors and Other Instructional Professionals - $900 plus step increase on existing schedule. Average teacher pay raise is 2.8% • All Other Pay Grades – 2.0% of mid point on applicable pay grade • All Full Time Employees - $500 mid year stipend to be paid in December (Retain) • Classroom Teachers - $250 classroom supply stipend to be paid in September (Retain) • Increase District contribution for health insurance by $10 per month. • Raises contingent on favorable ruling on use of federal stimulus funds.

16. SUMMARY OF SALARY/BENEFIT ENHANCEMENT RECOMMENDATIONS(Continued) Summary of Proposed Teachers’ Salary Schedule • Beginning Salary - $44,900 • Step Increments1-5 - $300 • 1-5 - $300 • 6-10 - $400 • 11-15 - $500 • 16-20 - $600 • 21-30 - $700 • Step 30 Salary - $60,900 • Retain $500 mid-year stipend • Retain $250 supply reimbursement stipend

17. DEBT SERVICE FUND BUDGET Revenues Property Taxes $44,178,378 Investment Revenue 150,000 Total Revenues $44,328,378 Expenditures • Fiscal Year Basis (Budget) $43,751,418 • Calendar Year Basis (Tax Rate) $44,562,484 Note: The Adopted Budget is on a Fiscal Year basis, but the tax rate is set to meet Calendar Year requirements.

18. FOOD SERVICE FUND BUDGET • Revenues $8,431,219 • Expenditures 8,315,789 • Surplus $ 115,430

19. TAX RATE INFORMATION

20. TAX IMPACT ON AVERAGE RESIDENCE

21. TAX RATE HISTORY